EconPapers    
Economics at your fingertips  
 

Financialization more than globalization! The contribution of global cities to inequalities

Olivier Godechot, Nils Neumann (neumannn@umich.edu), Lasse Henriksen, Skeie Hermansen, Feng Hou, Naomi Kodama, Zoltán Lippényi, Silvia Melzer, Halil Sabanci, Max Thaning, Paula Apascaritei, Dustin Holt, Nina Bandelj, István Boza, Marta Elvira, Gergely Hajdu, Alena Křižkova, Andrew Penner, Andreja Poje, William Rainey, Mirna Safi (mirna.safi@sciencespo.fr), Matthew Soener (matthew.soener@sciencespo.fr) and Donald Tomaskovic-Devey
Additional contact information
Nils Neumann: University of Michigan
Lasse Henriksen: Copenhaguen Business School
Skeie Hermansen: UiO - University of Oslo
Feng Hou: Statistics Canada
Naomi Kodama: Meiji Gakuin University
Zoltán Lippényi: University of Groningen [Groningen]
Silvia Melzer: UB - Universitat de Barcelona
Halil Sabanci: Frankfurt School of Finance and Management
Max Thaning: Stockholm University
Paula Apascaritei: UC3M - Universidad Carlos III de Madrid [Madrid]
Dustin Holt: Augusta University - USG - University System of Georgia
Nina Bandelj: UC Irvine - University of California [Irvine] - UC - University of California
Marta Elvira: IESE Business School
Alena Křižkova: CAS - Czech Academy of Sciences [Prague]
Andrew Penner: UC Irvine - University of California [Irvine] - UC - University of California
Andreja Poje: Association of Free Trade Unions of Slovenia
William Rainey: UMass Amherst - University of Massachusetts [Amherst] - UMASS - University of Massachusetts System
Mirna Safi: Institut d'Études Politiques [IEP] - Paris, CRIS - Centre de Recherche Internationale pour la Sante - UJZK - Université Joseph Ki-Zerbo
Matthew Soener: UIUC - University of Illinois at Urbana-Champaign [Urbana] - University of Illinois System
Donald Tomaskovic-Devey: UMass Amherst - University of Massachusetts [Amherst] - UMASS - University of Massachusetts System

World Inequality Lab Working Papers from HAL

Abstract: Global cities contribute to earnings inequality by concentrating high-paying jobs. But how much and why? In this paper, we quantify the contribution of global cities to earnings inequality and examine whether this contribution is attributable to the financialization of cities or their coordinating role in the global trade of goods and non-financial services. Using administrative linked employer-employee earnings data in nine advanced capitalist democracies and published Internal Revenue Service tables for the United States between 1989 and 2019, we show that global cities account for a substantial portion of national and regional increases in inequality. This contribution to inequality is far greater in financial cities than in the most comparable non-financial cities. In addition, the divergence in pay levels between financial and comparison cities increases with the financialization of respective countries. Our evidence thus shows that the contribution of global cities to inequality is driven more by the concentration of financiers than by other functions of global economic coordination.

Date: 2023-07
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04173209v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-04173209v1/document (application/pdf)

Related works:
Working Paper: Financialization more than globalization! The contribution of global cities to inequalities (2023) Downloads
Working Paper: Financialization more than globalization! The contribution of global cities to inequalities (2023) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wilwps:halshs-04173209

Access Statistics for this paper

More papers in World Inequality Lab Working Papers from HAL
Bibliographic data for series maintained by Caroline Bauer (bauer@pse.ens.fr).

 
Page updated 2024-11-04
Handle: RePEc:hal:wilwps:halshs-04173209